Power Corp (POW.TO)

Most people value this on a NAV basis, which means you take its ownership in Power Financial (PFC-T) and come up with a NAV. The reason to stick around is that it has always traded at a discount to NAV, and continues to trade at a deep discount to NAV. In the meantime, you get a big dividend. A good anchor for your portfolio. If looking for a non-bank investment, this one is good. 4.3% dividend.

(A Top Pick Oct 13/16. Up 21%.) His thesis is that the basic business is okay, and Paul Desmarais’s sons would reinvigorate the company after his death. He was wrong. No catalyst has emerged. However, prospects for insurance companies have improved somewhat, as interest rates have come up.

The $33-$35 range is a little problematic. One thing that is positive is that there is some action about $32. The trend line below that is moving higher. It is going to run into resistance at about $35. There are some better names, but if you are in this, he wouldn't bail on it. If you notice in the next couple of weeks that the rest of the financials are going upwards, and this is not moving, you may want to jump out of this into one of the other financials.

A well-run company. The yield is okay, but it doesn’t seem to be going anywhere. Either Power Financial (PWF-T) or Sun Life (SLF-T) are good alternatives. They have a little different asset mix than the banks. Yields are good, but maybe not good enough to justify them. They’ve not been increasing their dividends as fast as the banks.

The challenge is that it is a holding company. It is not easy to understand. It is 114 in his model. It has not shown up in his screening. Cash flow growth has dropped off in the last year. Consider alternatives.

He has POW-T for the yield. 91% of revenues is from life insurance. You want to see rising yields in lifecos and you do with this one. If interest rates continue to move higher it is beneficial.

This has got a nice yield and a huge upside potential from a Fair Market point of view. Trades at a beautiful discount to its BV. However, the market doesn’t seem to care. He likes the group and they are cheap.

The problem is that the market doesn’t recognize that this has good assets offshore, and they don’t like Power Financial (PWF-T) because of their emphasis on mutual fund sales. It is sort of in limbo. You only buy this on the basis of wanting a stock that has a safe dividend and a reasonable yield. Thinks this is just going to go sideways. You could probably do just as well by going to one of the banks or one of the insurance companies.

You are trading an upside appreciation opportunity, for a little better cash flow, compared to buying a Canadian bank. Pays a dividend of about 5% and trades at around 12X. Many Canadian banks are trading at around that same multiple, less dividend, but over the medium term you are going to see larger share price appreciation. He is not overly optimistic about mutual funds which is under their umbrella. He would rather own a Canadian bank.

This is Power Financial (PWF-T) which is made up mostly of Great West Life (GWO-T) and Investors Group. Great West reported a very disappointing quarter, which is the main reason why this company is a little weaker. If you own, he would swap your holdings into Manulife (MFC-T) where there is more upside.

A business that gets revenue stream from multiple operating businesses. Not a rocket ship, just a slow steady performer. In financials, he would prefer focusing on US banks and capital market companies like Morgan Stanley (MS-N). They will give you better returns going forward. (See Top Picks.)

A really good company and in the right space. It is undervalued historically and now.

The holding company for the Desmarais family that owns the majority stakes in Great West Life (GWO-T) and various life insurance companies. This hasn’t participated in quite the same way that a lot of the other financials have, because Great West Life has been a laggard. It has a big operation in England and Ireland, and with BREXIT and other things, that has been a drag. That is starting to turn around, and this is an opportunity to start buying this.

As an overall holding, it is a good holding. Fundamentally it looks very attractive. He could see it getting up $1-$2 and staying there. Feels the stars are finally aligning for financials. Prefers US financials because of the strength of the US$. There are much faster growth rates with the consumer finally coming out of a funk.

Partial Sell to buy Toronto Dominion (TD-T)? A conglomerate holding Industrial Group and Great West Life (GWO-T). Conglomerates tend to trade at a discount, and you are never going to fully realize the value of all their holdings underneath. 4.4% dividend yield. It is not a bad idea to take some profits and put it into TD, a more direct play on banking and on the US and Canadian economies.